Study shows return on investment of mental health support
An employee assistance program (EAP) is often the first step an individual takes towards regaining and maintaining good mental health — but little evidence has been available to illustrate the broader impact of these programs. A recent Canadian study paints a clear picture of the financial benefits for organizations providing an EAP as part of a group benefits package.
Background
EAPs provide employees with counselling and referral services to help them cope with mental wellness issues — a major cause of long-term disability claim costs along with short-term disability, conflict at work and absences.
Mental illness can affect anyone, no matter the age, gender or race. Living with mental illness presents a significant burden for individuals and their family or friends, largely due to the fear and stigmas associated with the condition. Yet maintaining good mental health is equally as important as maintaining good physical health.
Interestingly, a mere 50 per cent of Canadians are open with friends or co-workers about a family member with a mental illness, in comparison to 72 per cent who openly discuss a diagnosis of cancer, for instance, according to a 2008 report from the Canada Medical Association.
The stats
It’s hard to avoid the statistics, but here they are:
•An average of $51 billion is lost each year to the Canadian economy due to the impact of mental illness, according to a 2010 report from the Canadian Mental Health Association.
•One in four Canadian workers experience chronic work stress, according to Statistics Canada.
•Seventy per cent of disability claim costs relate to mental health concerns, according to Mental Health Commission of Canada.
•The World Health Organization predicts mental health problems will be the number two cause of disability by 2020.
"If you own or manage a company and think mental health is not your business," says Allan Stordy, president and CEO of Arete Human Resources, "then it’s time to think again."
It’s also an accepted fact that the longer someone is off work, the less likely she is to return, he says, which is why Arete commissioned an independent study to provide business owners with solid numbers and evidence-based facts on why providing employees with an EAP is well worth it.
"We’ve long known that counselling and support services offered through employee assistance programs improve the lives of those struggling under the weight of difficult mental health issues, including anxiety and depression," says Stordy. "Now we can link these positive results to very real cost savings for employers and our publicly funded health-care system."
The study
The research study, Investigating the Global Value of a Canadian Employee Assistance Program, tracked volunteer Canadian employees before they accessed Arete’s EAP services, and then three months after.
Significant improvements in mental health were seen in individuals accessing support through an EAP, evidenced by reductions in depression, anxiety and stress levels three months after the last counselling session. After EAP use, public health-care use relating to specialist visits was reduced.
Further, the study found that reduced work productivity and significant employer costs observed at the intake stage highlighted an organizational need for EAP services. At time of intake, 66 per cent of participants had performance issues, with an estimated average economic loss of $1,063 in the previous four weeks for employers.
This translates into an average annual loss per participant of almost $13,000, associated with absenteeism and presenteeism.
Prior to entering the EAP program, 66 per cent of study participants reported having moderate, severe or extremely severe problems with stress, anxiety or depression. Three months after accessing the counselling program, less than 32 per cent fell into these same categories.
"We are not suggesting that EAPs are a magic wand, capable of making all mental health issues disappear," says Stordy. "We have proven, however, that they are an effective gateway towards an improved state of health, not only for individuals, but for the organizations they work for and our health system.
"The evidence provided by this study, and future research, is aimed at breaking through any reluctance on accepting the benefit they provide to Canadians and our economy."
Patricia Alderson is director of corporate and small business services at Arete Human Resources in Calgary. She can be reached at [email protected].
